Research & Ethics Unit 

Policy in Relation to Alfred Health Employee-Created Intellectual Property, and Contracts Entered into by Alfred Health with Third Parties
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Preamble
Implementation
Policy and Guidelines on Intellectual Property
1.0 Interpretation and Basic Terminology
2.0 Awareness
3.0 Ownership
4.0 Risk
5.0 Policy on Income from Intellectual Property
6.0 Protecting Intellectual Property
7.0 Naming of Inventors/Interest Parties
8.0 Downloading works from the internet, photocopying and other unauthorised use
9.0 Administration
10.0 Breach of this Policy
Schedule 1: Confidential Information
Schedule 2: Laboratory Book Maintenance Policy
Schedule 3: Alfred Health Intellectual Property Committee

Preamble

Alfred Health comprises The Alfred Hospital, Caulfield Hospital and Sandringham Hospital.

The Alfred is one of Victoria’s most reputable teaching hospitals. It also has a number of key research linkages, particularly with Monash University, Baker IDI Heart and Diabetes Institute and the Burnet Institute. A key tenet of The Alfred’s research mission is to ensure that its research excellence is manifested in better healthcare outcomes, as well as as well as generating revenue for Alfred Health and its staff to continue its cycle of appropriate investment in key research areas. While less developed than at The Alfred, research and development activities at Caulfield and Sandringham Hospitals are strongly encouraged.

To ensure that this vision can be met and enhanced, it is imperative that the “intellectual property” of Alfred Health is captured and utilised for the benefit of Alfred Health and its staff, the latter being the ultimate creators of this intellectual property.

With the formation of the Alfred Medical Research and Education Precinct (AMREP) and Alfred Health’s desire to ensure appropriate management and commercialisation of its Intellectual Property, it has developed this policy and management guidelines for Intellectual Property created by Alfred Health Staff.

It is similarly important for entrepreneurial research activity to be encouraged across Alfred Health’s sites, within the bounds of appropriate corporate governance.

Implementation

  • This policy relates to all Alfred Health Staff as defined in the policy.
  • This policy is overseen by the Alfred Health Intellectual Property Committee.
  • This policy will be brought to the attention of all existing Alfred Health Staff. Any new Alfred Health Staff will be advised of this policy prior to commencement of their employment (or other association with Alfred Health).

This policy is to be applied whenever Alfred Health Staff develop Intellectual Property in the course of their employment (or other association with Alfred Health) or Intellectual Property is or could be developed under a contract to which Alfred Health is a party. It does not apply to Intellectual Property already owned by Alfred Health Staff prior to their appointment to Alfred Health.

Alfred Health Policy and Guidelines on Intellectual Property

Purpose of Document

This document explains Intellectual Property, how it may advantage Alfred Health Staff and their departments and their obligations to Alfred Health. Alfred Health recognises the value of the research conducted on its premises, or by staff, students, visiting scientists and visiting medical officers using its facilities or services. It also recognises that Alfred Health Staff not engaged in research may develop Intellectual Property in the course of their employment or through their association with Alfred Health.

1.0 Interpretation and Basic Terminology

"Alfred Health" means the legal entity of which The Alfred, Caulfield Hospital and Sandringham Hospital are a part.

"Alfred Health Intellectual Property Committee" means the committee established by Alfred Health for administration and commercialisation of Intellectual Property.

"Alfred Health staff" means an individual who is:

  • employed directly by Alfred Health;
  • indirectly employed through Alfred Health such as through grant funds administered by Alfred Health;
  • a Joint Alfred Health Employee;
  • an Alfred Health Student; or
  • a Visiting Employee.

"Alfred Health Student" means a student who uses the facilities of Alfred Health as part of the student’s undergraduate, postgraduate or research activities.

"Confidential Information" means the Confidential Information referred to in Schedule 1.

"Innovation" means any process, invention, design, artistic or literary work (or other copyright work), information, know-how, reagents or the like with potential commercial application.

"Intellectual Property" refers to all kinds of Intellectual Property including but not limited to patents and applications, know-how, confidential information and trade secrets, computer programs or graphics, source codes or the like, registered designs, copyright, circuit layout rights, trademarks, and applications for registration of trademarks and any contractual rights which may exist in relation to any innovation or work.

"IP Contracts" refers to any contract written or oral proposed to be entered by Alfred Health where future or existing Intellectual Property rights of Alfred Health are proposed to be transferred or licensed to or encumbered by any third party.

"Joint Alfred Health Employee" means a person who is jointly appointed by Alfred Health and one or more other employers.

"Visiting Employee" means a person who is approved to use the facilities of Alfred Health for a clinical purpose, observation or research.

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2.0 Awareness

2.1   It is important that all Alfred Health Staff have an understanding of Intellectual Property. This includes not just researchers but Alfred Health Staff who administer any matters related to Intellectual Property or create Intellectual Property.

2.2   It is the policy of Alfred Health that all Alfred Health Staff, Alfred Health students and other visitors who may in some way be connected with research, development or administration of Intellectual Property rights, should have a sound understanding of how Intellectual Property rights may be created.

2.2.1   When Alfred Health Staff become aware that Intellectual Property has been created they should follow an agreed procedure to ensure the Intellectual Property is protected. They must avoid acts or omissions which could jeopardise the ownership or protection of Intellectual Property rights.

2.2.2   The procedure to be followed when Intellectual property is created is as follows:

  • With laboratory research, laboratory notebooks are to record the Intellectual Property created. Alfred Health Staff must retain them and store them in a safe place and comply with the requirements for laboratory books set out in Schedule 2.
  • Alfred Health’s copyright should be noted on any literary work prior to its publication.
  • Prior to a registrable trade mark being used in the public domain, a trade mark search should be undertaken to avoid any possible infringement and if clear, a registration application should be considered.
  • The Alfred Health Staff member involved in the creation of the Intellectual Property should notify the Alfred Health Intellectual Property Committee if the Intellectual Property is or could be capable of commercialisation. The secretary of the Committee is the general manager of the Alfred Health Research Office. The Alfred Health Staff member may be required to assist the Committee with technical advice. The Committee will decide if the Intellectual Property is capable of commercialisation and notify the Alfred Health Staff member accordingly.

2.3   Upon commencing employment at Alfred Health (or other association with Alfred Health), all Alfred Health Staff must be advised of this policy. Any person who is not an employee of Alfred Health should be required to assign any Intellectual Property rights to Alfred Health at the time of commencement.

2.4   Where an Alfred Health Staff member is a Joint Alfred Health Employee, Visiting Employee or Alfred Health Student, or where the research or activity is a collaborative venture with another organisation which may or may not be providing funding, the contract governing the venture must clearly specify pre-existing Intellectual Property and how the ownership of Intellectual Property developed from the research or activity is to be treated. Examples would be clinical trials or other research involving joint Alfred Health Staff and University staff and collaborative research projects between Alfred Health Staff and organisations which supply research funding.

3.0 Ownership

3.1   Where Intellectual Property is created during the course of an Alfred Health Staff member’s employment or as a result of use of resources, facilities or funds provided by Alfred Health, then in the absence of any agreement in writing to the contrary, those Intellectual Property rights belong to and are owned by Alfred Health. This applies wherever the work is performed and includes Intellectual Property developed from work performed by an Alfred Health Staff member out of working hours and at home or at non-Alfred Health premises.

3.2   With the exception of any agreement entered into as per Clause 2.4 by Alfred Health with the third party with whom a Alfred Health Staff member has an affiliation (as in the case of a Joint Alfred Health employee, Visiting Employee or Alfred Health Student), all of the Intellectual Property generated by Alfred Health Staff during the course of their employment or other association with Alfred Health will belong to Alfred Health. All Alfred Health Staff and any other persons considered relevant by the Alfred Health Intellectual Property Committee shall be required to execute, as a condition of employment, secondment, attendance or use of Alfred Health facilities or funds, an appropriate agreement to the effect that all Intellectual Property rights developed in the course of that association are to be owned by Alfred Health. Alfred Health may also require Alfred Health Staff to confirm Alfred Health’s ownership of any Intellectual Property that was created by them during the course of their employment by or other association with Alfred Health.

3.3   It is Alfred Health’s sole province to deal with Intellectual Property rights. Any application for patents or other protection and the entering into and negotiation of Intellectual Property contracts will be undertaken by the Alfred Health Intellectual Property Committee at its discretion, but in consultation with the relevant Alfred Health Staff.

Without the written consent of the Alfred Health Chief Executive, acting on the advice of the Alfred Health Intellectual Property Committee, there should be no discussion of Innovations with third parties.

3.4   If the Alfred Health Intellectual Property Committee decides on behalf of Alfred Health that it does not wish to provide funds for the protection and/or commercialisation of Intellectual Property it shall, if requested by the Alfred Health Staff member who invented the Intellectual Property, provide, for a forty-five (45) day period, a first right to negotiate the terms under which Alfred Health will assign this Intellectual Property to the Alfred Health Staff member, taking into account all costs incurred by Alfred Health in developing, protecting and commercialising the Intellectual Property to the date of the assignment, and subject to these costs and any taxes and other expenses relating to the assignment being met by the Alfred Health Staff member.

If no patents have been filed and no other costs incurred, in respect of such Intellectual Property when the Alfred Health Intellectual Property Committee decides not to proceed, such assignment shall be free of charge to the inventor.

However, if Alfred Health has incurred costs in developing, protecting and commercialising the Intellectual Property to the date of the assignment or costs associated with the assignment which the inventor is unable to repay to Alfred Health, the assignment may include provisions for Alfred Health to receive a proportion of any income or consideration generated by the commercialisation of the Intellectual Property.

If the Intellectual Property rights are assigned, conditions of the assignment will be subject to an ongoing right for Alfred Health to use the Innovation in-house at no cost to Alfred Health. In addition, the Alfred Health Staff member will provide the Alfred Health Intellectual Property Committee with a report on a six monthly basis of the status of the Intellectual Property. In the event of the Alfred Health Staff member indicating in such a report, that he/she is not proceeding with protection or commercialisation of the Intellectual Property, the Alfred Health Staff member and the Intellectual Property Committee must meet as soon as possible to negotiate a reassignment of the Intellectual Property rights.

3.5   Where a work to which this policy applies is created solely for the purpose of publication in a professional or learned journal, or by form of a text book or other academic publication and the publisher requires, as a condition of publication, that the author assigns copyright in the work to it, Alfred Health must assign copyright in the work to the person who created that literary work, or to the publisher, as required to facilitate the assignment.

3.6   Any assignment of copyright under the preceding paragraph must be on condition that:

a)   Alfred Health has an automatic, non-exclusive, royalty-free and irrevocable licence to reproduce, publish, disseminate or otherwise use the work for Alfred Health’s own purposes; and

b)   Alfred Health has the right to recover from the publisher any costs incurred by Alfred Health in providing funding, salary, resources, facilities, apparatus or supervision for the creation of the literary work.

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4.0 Risk

4.1   Development and protection of Intellectual Property involves an element of risk. The cost of obtaining legal advice, searches and advice from patent attorneys, as well as patent application fees themselves, must be considered. This consideration will be the province of the Alfred Health Intellectual Property Committee according to the terms of delegations to it by the Board.

4.2   Alfred Health reserves its rights to determine whether particular Intellectual Property should be pursued and developed and whether protection such as patents should be obtained. Alfred Health may at any time seek external advice concerning any of these matters.

5.0 Policy on Income from Intellectual Property

5.1   Where Alfred Health successfully commercialises Intellectual Property, income or other consideration will be derived. Alfred Health will incur costs during the process of such commercialisation. Any income or consideration to be shared by Alfred Health will be based on net income derived from the Intellectual Property.

Income derived from the commercialisation of Intellectual Property will be distributed net of the following costs:

5.1.1   Costs associated with the commercialisation and protection of the Innovation or the Intellectual Property, which costs shall include, but not be limited to:

(a)   all costs of protecting the Intellectual Property, including all legal costs, costs of obtaining or applying for a patent, registered design or any other form of Intellectual Property protection; costs of enforcing or defending any patent, copyright, registered design or any other form of Intellectual Property;

(b)   legal costs of entering into any Intellectual Property contract or other commercial agreement and/or advising on any matter concerning the Intellectual Property;

(c)   any tax, duty, excise or impost, application or registration fee including stamp duty on any agreement which may be payable by Alfred Health in relation to commercialising the research and/or any tax on income derived from the Intellectual Property; and

(d)   research-related costs borne by Alfred Health.

5.1.2   The balance of the income or consideration remaining after the payment of the amounts referred to under 5.1.1 above shall be disbursed as follows:

(a)   one-half to the relevant Alfred Health Staff;

(b)   one-quarter to the Department(s) within Alfred Health in which the relevant Alfred Health Staff were employed at the time of making the invention;

(c)   one-quarter to Alfred Health.

5.2   If there is more than one Alfred Health Staff member involved in the creation of such Intellectual Property, the 50 per cent of proceeds shall be divided amongst Alfred Health Staff named as inventors in accordance with the independent patent attorney’s report described in clause 7.

5.3   It is also recognised that Intellectual Property may be commercialised through “start-up” companies. In such cases Alfred Health Staff may, with the approval of the Alfred Health Intellectual Property Committee, own equity in such start-up companies in addition to their entitlements under this section. Their equity entitlements and those of Alfred Health will be in the same proportion as set out in clause 5.1.2.

6.0 Protecting Intellectual Property

6.1   Alfred Health Staff must comply with any guidelines issued by the Alfred Health Intellectual Property Committee, to ensure that Intellectual Property rights are protected.

6.2   Alfred Health understands the desire and the need within the medical and scientific communities to publish findings and results and to discuss matters with colleagues in the interests of medical advancement. However, it recognises that it can be extremely easy to lose the ability to obtain patent or other Intellectual Property protection. This may occur with the premature publication, public announcement or report in the media, seminar, conference or other communication. It may also be lost by approaching commercial interests too early. It is important that Alfred Health Staff adopt a prudent approach to disclosure of Intellectual Property, especially where there is a prospect of commercialisation and thus a commercial return.

6.3   If an Alfred Health Staff member considers that Intellectual Property developed in the course of his/her employment (or other association with Alfred Health) could be commercialised, he/she should contact the Alfred Health Legal Counsel to seek advice. This should be done before publication or other disclosure of the Intellectual Property.

6.4   It is important that Alfred Health Staff protect Alfred Health’s Intellectual Property against unauthorised use. As part of such protection it is necessary to ensure that the Intellectual Property rights claimed are valid and/or have priority over any competing claims. Alfred Health Staff must ensure that the research data they generate is recorded in accordance with appropriate scientific procedures and format to enable it to be entered into evidence and thus protected at the necessary time. Alfred Health Staff must follow the guidelines for the keeping and maintenance of research data and records published from time to time on behalf of the Alfred Health Intellectual Property Committee. The current guidelines are attached as Schedule 2 to this document.

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7.0 Naming of Inventors

Alfred Health Staff involved in the development of Intellectual Property in the course of their employment or association with Alfred Health and which has the potential for commercialisation are expected to agree between themselves on the degree of inventorship if each person involved. Where they cannot agree, the Secretary of the Alfred Health Intellectual Property Committee shall refer the matter to an independent patent attorney who shall make appropriate enquiries, including, if necessary, interviewing the relevant Alfred Health Staff to give them an opportunity to put their case for inventorship. The patent attorney will examine their claims and within thirty (30) days of the referral shall issue a formal opinion outlining the inventors to be named and if justified in his/her opinion the contribution of each inventor to the invention. Such opinion shall be binding on Alfred Health and Alfred Health Staff. The costs of obtaining such opinion shall be borne by the Alfred Health Intellectual Property Committee.

8.0 Downloading works from the internet, photocopying and other unauthorised use

Alfred Health Staff must not engage in unauthorised use of copyright works including works from the internet. Alfred Health Staff must comply with relevant policies and guidelines published on the intranet to ensure there is no infringement. Alfred Health Legal Counsel Bill O'Shea(ext 63750), together with the Visual Communications Department (ext 62331), the AMREP library (ext 63003) and the Caulfield Hospital library (ext 66832) can also assist. The same procedure should be followed when third party copyright works are to be photocopied for use.

9.0 Administration

Alfred Health maintains the Alfred Health Intellectual Property Committee to advise Alfred Health’s Chief Executive on all matters related to Intellectual Property and implement and administer Alfred Health’s policies and procedures related to it. Schedule 3 sets out the Terms of Reference for the Intellectual Property Committee.

10.0 Breach of this Policy

10.1   Any breach of any provision of this policy by any Alfred Health Staff is to be brought to the attention of the Alfred Health Intellectual Property Committee.

10.2   The Alfred Health Intellectual Property Committee may, at its discretion, inform itself of the circumstances of the breach.

10.3   The Alfred Health Intellectual Property Committee may, at its discretion, recommend that Alfred Health invoke disciplinary proceedings against the Alfred Health Staff member in relation to the breach.

REFERENCES

Charter of Human Rights and Responsibilities Act 2006 (Vic)1

1REMINDER: Charter of Human Rights and Responsibilities Act 2006 – All those involved in decisions based on this policy have an obligation to ensure that all decisions and actions are compatible with relevant human rights.


Schedule 1: Confidential Information

Preamble

Commonwealth legislation provides that all Intellectual Property created by employees in the course of their employment is owned by their employer unless there is a written agreement to the contrary. To ensure that the commercial value of Alfred Health’s Intellectual Property is not lost, all Alfred Health Staff members must be aware of their obligations in relation to Confidential Information and not do or fail to do anything which could result in a loss of Alfred Health’s Intellectual Property. The same obligation extends to Alfred Health’s confidential information.

During the course of their employment by Alfred Health, Alfred Health Staff may make, create or have access to confidential information or data which has commercial potential including but not limited to data within laboratory note books, samples, reagents, reports and the like (“Confidential Information”). Alfred Health requires Alfred Health Staff to take whatever steps are reasonable to protect it from disclosure. It is a reasonable condition of their employment by Alfred Health that Alfred Health Staff keep the Confidential Information confidential in accordance with the following terms and conditions.

Terms and Conditions

1. Obligations of Confidentiality

1.1   Alfred Health Staff must maintain the confidentiality of the Confidential Information and use the Confidential Information only for the purposes of their continuing employment (or other association with Alfred Health).

1.2   Alfred Health Staff:

(a)   must not disclose the Confidential Information to any person to make use of or take advantage of the Confidential Information for any purpose other than as specifically permitted by this Policy;

(b)   must take all steps necessary to ensure that the Confidential Information is kept confidential;

(c)   must not copy the Confidential Information or permit the copying of the Confidential Information in any form other than as permitted by this Policy;

(d)   upon request must return the Confidential Information to Alfred Health together with any copies of the Confidential Information;

(e)   must not make use of the Confidential Information in any manner so as to obtain any benefit, right or privilege for him/herself or for any other person that would not have been available but for having access to the Confidential Information; and

(f)   must not publish or otherwise disclose Confidential Information, including data, without the express consent of Alfred Health.

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2. Permitted disclosure

2.1   Subject to clause 2.2, Alfred Health Staff may disclose the Confidential Information to any officer, employee or agent of Alfred Health who has a specific need for access to the Confidential Information.

2.2   If permitted by the Chief Executive of Alfred Health or his/her delegate, an Alfred Health Staff member may copy the Confidential Information, but must:

(a)   keep a record of all copies and make that record available on request;

(b)   take all precautions to ensure that the copies are protected from unauthorised access or damage; and

(c)   ensure that the copies are returned or, in the case of copies stored or reproduced other than in a physical form, expunged at the earlier of:

(i)   a request being made by Alfred Health; or

(ii)   upon completion of the confidentiality period described in any agreement governing the Confidential information.

2.3   Obligations of confidentiality do not extend to information that:

(a)   is public knowledge, other than as a result of a breach of this Policy;

(b)   is already known to the time of disclosure (including trade secrets and inventions not disclosed in existing patent applications);

(c)   is obtained by the Alfred Health Staff member from a third party who is not an Alfred Health Staff member and who has a lawful right to disclose it;

(d)   the Alfred Health Staff member is required by law to disclose; or

(e)   is being or later is independently developed by the Alfred Health Staff member without use of or resort to the Confidential Information and this can be proven by written records.

3. Term

Alfred Health Staff remain bound by the terms and conditions of this policy for a period of three years after ceasing employment (or other association with Alfred Health).


Schedule 2: Laboratory Book Maintenance Policy

The following are requirements for Alfred Health Staff and Alfred Health Students in relation to laboratory book maintenance:

  • Commence a new experiment on a new page.
  • Record the experiment title and date.
  • Use black or blue biro only.
  • Do not erase or use correction fluid – line out mistakes with a single line and initial and date new entry.
  • Do not leave blank spaces; draw a line through such spaces.
  • Sign and date each page.
  • Have all pages witnessed regularly (at least once a week) by a non-supervisory colleague.
  • Record all results and observations. (Any additional raw data in hard copy form can be adhered in the notebook with permanent pH neutral archival glue).
  • Material that is added must be signed across the edge of the insertion.
  • Material that is added must be witnessed.

Schedule 3: Alfred Health Intellectual Property Committee

Purpose and function

The Alfred Health Intellectual Property Committee will advise the Alfred Health Chief Executive on all matters related to Intellectual Property and implement and administer Alfred Health’s policies and procedures related to it.

The Alfred Health Intellectual Property Committee will oversee the work of the Research Office in all discussion and negotiation between Alfred Health Staff and other relevant persons and Alfred Health, regarding Intellectual Property unless the Chief Executive or Board determines otherwise. The Alfred Health Intellectual Property Committee will be responsible for developing the initial processes and maintenance of appropriate mechanisms for establishing and implementing this policy.

The composition and terms of reference of the Committee will be reviewed annually and amendments recommended to the Board.

Terms of Reference

On behalf of the Board of Directors of Alfred Health:

  • To oversee and periodically review the Alfred Health Intellectual Property Policy and its implementation;
  • To advise the Chief Executive on all matters pertaining to the management of the Intellectual Property of Alfred Health including, but not limited to its identification, protection and commercialisation;
  • To direct education programs to disseminate information about Intellectual Property and its protection, throughout the organisation;
  • To oversee interaction between Alfred Health Staff and commercial organisations, patent attorneys and legal advisers, regarding Intellectual Property;
  • To ensure the appropriate negotiation of all Intellectual Property contracts, through the Committee Secretary and/or other appropriate Committee members;

Reporting

The Committee will report to the Alfred Health Board annually or as required, via the Chief Executive.

Meetings

The Committee will meet as required and may invite any number of non-members to attend.

External assistance

The Committee may within its delegated authority and at the expense of Alfred Health, seek independent external advice on any matter placed before it.

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This page was last modified on 09/01/12


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